Mazaya_FS_E Q4. 20

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) 36 7. Financial assets at fair value through other comprehensive income (“FVTOCI”) 2020 2019 Unquoted equity securities 9,880,250 - Investment funds 1,259,696 3,115,718 11,139,946 3,115,718 During the year ended December 31, 2020, the Group transferred its investment in associate to financial assets at FVTOCI which was recognized at its fair value on the transfer date (Note 8). Financial assets at FVTOCI amounting to KD 11,139,946 (2019 – KD 3,115,718) are pledged as collateral against Islamic bank facilities (Note 13). 8. Investment in an associate Ownership percentage % Amount Name of associate Country of incorporation Principal activity 2020 2019 2020 2019 First Qatar Real Estate Development - K.S.C. (Closed) State of Kuwait Real Estate Development - 17.53% - 9,859,742 The movement during the year was as follows: 2020 2019 Balance at the beginning of the year 9,859,742 9,852,650 Share of results from associate (474,452) 46,490 Share of associate’s other comprehensive income (loss) 178,049 (39,398) Effect of reclassification of an associate to financial assets at FVTOCI (a) 172,194 - Transferred to financial assets at FVTOCI (a) (9,735,533) - Balance at the end of the year - 9,859,742 a) During the year ended December 31, 2020, the group transferred its investment in First Qatar Real Estate Development Company – K.S.C. (Closed) (associate company) to financial assets at FVTOCI (Note 7), as the group lost its the significant influence for this investment and accordingly, the group had valued this investment as on the date of losing its significant influence, which had resulted in a gain amounting to KD 172,194 that was recognized in the consolidated statement of profit or loss. The Group’s investment in an associate amounting to KD 9,859,742 as at December 31,2019 is pledged as collateral against Islamic bank facilities (Note 13). 9. Investment properties 2020 2019 Balance at the beginning of the year 171,152,381 146,379,207 Additions 3,643,984 8,494,098 Effect on acquisition of a subsidiary - 8,732,519 Transferred from properties held for trading (Note 6) - 9,567,298 Foreign currency translation adjustments (1,913,487) (1,251,567) Change in fair value (4,076,282) (769,174) Balance at the end of the year 168,806,596 171,152,381 Investment properties mainly compromise the following: 2020 2019 Land 32,343,721 33,194,636 Developed properties 119,987,974 120,858,402 Rights to use real estate assets 16,474,901 17,099,343 168,806,596 171,152,381